# Minimum Yearly Repayment Calculation

**Loan amount (P):** $50,000  
**Division 7A benchmark interest rate (r):** 8.77% (0.0877)  
**Remaining loan term (n):** 7 years  

**Formula:**  
\[
\text{MYR} = P \times \frac{r}{1 - (1 + r)^{-n}}
\]

**Step-by-step computation:**

1. Compute \((1 + r)^n = (1.0877)^7\)  
   Using precise multiplication:  
   \( (1.0877)^7 = 1.801208136317837 \)

2. Compute \((1 + r)^{-n} = 1 / 1.801208136317837 = 0.5551829242\)

3. Denominator = \(1 - 0.5551829242 = 0.4448170758\)

4. Numerator = \(P \times r = 50,000 \times 0.0877 = 4,385\)

5. MYR = \(4,385 / 0.4448170758 = 9,857.9849\)

**Rounded to the nearest cent:**  
**$9,857.98**

---

**Controlling authority:**  
Section 109E of the *Income Tax Assessment Act 1936* (Division 7A).